Roland Frasier & Jay Abraham: The Cheat Codes

23:44It's hard to pay consultants. They want five grand a month. They want 20 grand a month. Guess what? If you can convert their expertise and show them that you can correlate it, you can demonstrate that their expertise applied to your business will either make more money or save more money or reduce your cost of inventory or anything, you can pay them on results. And about half of the consultants out there, if they trust you, will do it. So you can have infinite access, any kind of consultant or expert you wanted. You can create new businesses at will. I was telling Roland many years ago in the newsletter business, I figuratively, figuratively, because I didn't put any money out, bought the rights to sell other products outside of newsletters to newsletters' audience.

24:40I bought the rights to 40 different newsletters for nothing up front. And the first week, swear to God, I made$500 ,000. I had no risk. I got promoted by the newsletters that had spent hundreds of millions of dollars to build their subscribers. I got access to their endorsement, their credibility, their audience, and I had no risk whatsoever. I could list a ton of them. You control other people's assets. This is really cool. You can basically get control of tens of millions, hundreds of millions, millions, hundreds of thousands. The point I want to make is I'm looking at these wonderful people, it's not behind me, all over.

25:24It doesn't matter if Maria, I can't pronounce your last name. It doesn't matter if Mike Bao. It doesn't matter if Mitchell, Silva. It doesn't matter if any of you have a business that's large or small or expansive or local or regional or international or vertical. It doesn't matter. All of these are applicable. I have done them for more companies, more industries, more parts of the world. You reduce costs and you increase profits. When you do JVs and you only pay back for the revenue profit that comes in, it can double or redouble the profit that you make from your business. And that's all going to come to your bottom line.

26:12If you do enough of it, it can give you advantages galore. Buying advantages, leveraging off your people advantages. You eliminate capital constraints. I have a concept called the, pardon my voice, the unlimited business. Just because we're going to run out of time for it and we want people to be able to ask questions. Yeah, then stop. I'm going to kind of accelerate us into, so basically reduce costs and increase profits and eliminate capital constraints. And Nikki, Nikki, you said that this sounds too good to be true and it doesn't sound real. Stick with us and don't be, again, constrained by the tyranny of the how just yet because we're going to show you how as we go through this.

26:51can we do kind of really fast these examples basically tell some of the stories about this yeah sure of course cool yeah so quick quick story years ago you know the product i see out if you're from the united states it's an analgesic bomb for arthritis neuritis all those kinds of things i was involved with it in its beginning we had no marketing budget my job was to structure partnerships with radio stations television stations newspapers giving you the bottom line I was able to set up over$1 ,000. We went from$20 ,000 to$40 million in 15 months. We sold it for$60 million many years ago, and we built a distribution network that built for us 500 ,000, 500 ,000 repeat buyers, and we did it all paying on results.

27:42So they can get the idea. So what was the partnership, basically? What's the matchup there. The match up there, and if you learn the three ways and you got into the details, we gave away the profit on the first sale to the radio stations because we had a lifetime of repeat buyers. The average buyer was buying at least once a year, half of them were buying. So if we tie back to the three things then, you were able to access a new market or a new product? It was accessing a new market that we didn't have. Okay. So basically by pairing Icyot with all those different media, you exposed that brand to hundreds of new markets.

28:22Yeah, but we got them to not just, they sold for us and we got, besides, this is very interesting, it was a mail order product in the beginning, but we got so much no cost advertising that it forced retail distribution, which made it a consumer product, which put a zero on the end of its asset value. And that was really cool. And we had almost no front end risk whatsoever. Okay. How about Tony? Yeah, so Tony, there's two stories real quick. I went to Tony. Tony basically let me get his endorsement, the first program I ever did. And he only let me do it to the people that had nothing else to buy.

28:59There were only$20 ,000. It cost me$10 ,000 to mail the list. And we did, Tony endorsed it. We did$9 million on the first sale. But there's a flip. When Tony was doing infomercials, he had a deal with Guthy Ranker, the infomercial company. They put up the money. They did everything. Tony got half the profit, but he got joint tenancy, meaning they shared the buyer names. And those buyer names, besides buying his$200 tape course back then, they were the ones that went on to UPW. They're the ones that went on to Mastery. They were the ones that went on to literally all the other product services and groups that he has.

29:41Again, right? Yeah. Accessing television. Yeah. Yeah, well, two. And then Carnival Cruises, when they started, this is a great story, and I don't want to waste your time, but they had only one secondhand boat. True story, because I knew the guy. One side wasn't painted, and they had to always bring it in on the painted side. Swear to God. And they had no money to market. And my friend set up partnerships with radio stations, television stations, all over that promoted for them, and they did$100 million the second year. New markets. New markets. Okay, how about lawnmowers? This is great. So I used to go to Asia.

30:17When I was in China once, this is a great story. I'll tell you real quick. A young man came to me, and he was trying to grow his business, and the bank wouldn't lend him money. And I said, well, give me the story. He was from China. He was a local motorcycle manufacturer. Only in a city that's got 100 million people in one city could be local. But he wanted to go all over Asia. If he had money, he wanted to get a factory. He wanted to get distribution. He wanted salespeople. He wanted dealers. I said, well, what's the problem? And he went, well, I have no money. I said, you don't need money. All you have to do is realize your problem is the solution to somebody's bigger one.

30:51They just don't know it. So I said, go all over Asia on a field trip and find somebody in a non-competitive complementary business that has a factory distribution, all these things, and make a partnership. A year later, I came back. The guy came to the mic at a program and said, I did what you said. I went all over. When I got to Kuala Lumpur in Malaysia, I found Asia's largest, lawnmower manufacturer. They had a massive factory, a huge second shift. They weren't deploying fully. We made a partnership where all I had to do is bring what's called the tools and the dyes, which are the molds to form the parts that come and assemble to the product.

31:29They had offices in 10 countries. They had sales forces. They had dealers, thousands of them. And he said in our first full year together. We both made$20 million each. Nice. Newsletters and gold? Yeah. So I structured, when I got started in the newsletter, everyone knows about all the financial newsletters. When they first started, I had a gold brokerage. They sold gold, rare coins, gold stocks, and everyone else was doing it in the Wall Street Journal. But I went to all the financial newsletters and made our company the recommended provider. We basically were introduced when they had a new subscriber in their kit.

32:14We had three or four different special editions of the newsletter featuring the case for gold. We had them do special events for us, and they got paid a share. It was fully disclosed, but we went from$300 ,000 to over$500 million. Now, it was a low margin, but the man that I helped made$25 million the first year we did it, all based on paying somebody for results. So the cool thing that we want you to take from this is that all you have to do, you're always limited by what you think is possible, right? So we want you to think outside the box of what's possible for you, that you can actually access all these things.

32:55And so we tell you all these stories and all these examples to help you get the wheels turning as to what might be possible in your business. So as we share with you these examples, we really want you thinking and writing down, how can I apply this to my business? And we are reading your comments, so please feel free to share there as well. And we know corporate giants do this. There are hundreds of thousands of partnerships that are formed. I think you said, what was it that, was it 88 % of the? Yeah, there's a lot of data on corporations, big ones. Something like 77 % are doing partnerships.

33:32Over 47 % said that over 20 % of their revenue comes from partnerships and the most profitable revenue. Microsoft, as an example, has 200 ,000 partnerships, and it's adding an actual 7 ,500 every month. and 80 or 90 percent of their main business comes from that. But there's all these stats on it and all the corporations are doing it. And a survey of chief marketing officers said that the main initiative they were focusing on in 2023 was adding more strategic alliance partnerships, co-branding, or what they call ecosystems. And if they can do it, there's no reason you shouldn't do it. Will you tell them the story of the Rothschilds and Barrett?

34:19Yeah, yeah. It's a great story, and it's indicative of what I'm saying, and it's told many ways. It's told about the Rothschilds or somebody named Bernard Baruch, who was a famous financier back in the 20s, or Rockefeller, but it doesn't matter. Supposedly, somebody went up to one of them, it doesn't matter which one, and wanted to borrow$100 ,000. and whoever it was, Baruch, Rockefeller, Rothschild said, I will not lend you a penny, but I will do something a hundred times more valuable. I will walk back and forth twice with my arm around, I'm so short, with my arm around your shoulder on the stock exchange and when we're done, everybody will lend you all the money you want.

35:08That's the power of tying into other people's credibility, distribution, affinity, access. It is that lucrative. What about Amazon and... Yeah, so American Express and Amazon made an alliance. American Express has cards and they want more, more business cards using American Express than MasterCard or Visa. So they made a deal with Amazon to do a branded card. Amazon promoted the heck out of it to all their sellers. They got, I think it was 500 ,000 new users. Amazon got a percentage of the fees. And American Express got, you know, probably the best source of business. I don't know what the numbers are, but 500 ,000 times.

35:57I mean, we spend$50 ,000 or$70 ,000 a month on our American Express. So assume it was 20 times 500. What is that? a billion dollars? It's a lot of money. It's either a hundred million or a billion. That's an example. And Sears basically... This is really cool. Anybody that remembers Sears, it was a big department store. They started an insurance company called Allstate. And they used kiosk in their stores to access their clientele and feed it to the Allstate insurance agents. Now, a piece of minutia. Sears is out of business. Allstate is a multi-billion dollar company and they built the whole thing from accessing Sears clientele.

36:46A few other examples too. Starbucks basically has gone into banks and grocery stores. Yeah. And on the highway and into truck stops. Everywhere that they can think of. And this again, think about how you guys can do this. Look at these examples and then say, who can I get to wrap their arm around me and walk back and forth so that they want to do business. Who can I look at who's already got access, who's already got physical locations if you need physical locations? Who already has the things that you want, right? Movies and reality shows do this with tie-ins and product placement. And it's$100 billion.

37:22At least. And I didn't get the stats because I didn't know we were going to talk about this, but there were enormous yield. I think Hershey's had a 47 % growth when they did product placement and you can do the equivalent, not on TV, but in all kinds of other places. If you have a backend, you can use your product as a bonus to somebody else or vice versa. And either you get the buyer or you get a piece of their buyer. There's so many ways to do this, Roland. Yeah. And so there's a lot of opportunities here too. And you can kind of take a look at the ones that we've got on the screen for you right now, but there are assets that have been hidden away that transcend revenue.

38:06That's the one I'd like for you to talk about. And then we'll kind of let you guys process the other three so we don't fall behind. And I was thinking about what I said. So repeat for me. The hidden assets. I'm ADD. Hidden assets that transcend revenue. Yeah, okay. So hidden assets are really cool. Hidden assets are people that stop buying that you could sell lots more things to if you made a partnership. Hidden assets are people that never bought that you could feed to some alternative. And I can give you some examples of that, but it takes a long time. I've got hundreds of millions of dollars of example.

38:39Hidden assets are processes, procedures, systems. We had, just an example, a lumber mill that had a mechanism for getting, reducing energy costs, which is 90 % of the real hidden expense in taking raw timber and turning it into lumber. and he saved hundreds of thousands of dollars a month, but he could give his lumber away and pass like a thousand miles. It was too costly. We took the mechanism and licensed about 500 lumber mills around the world for$25 ,000 a year. He made$6 million from licensing and he made 1 million from his lumber mill. I did the same thing with a car wash that had a mechanism for increasing the number of like$29 upgrades, and they were making an extra$20 ,000 a month, a lot.

39:34But we, for$100, licensed 2 ,000 other car washes, and it was making$200 ,000 for that. But just a couple of examples. I love it. Yeah. So in terms of the different types of alliances, you've created this great list that we're putting up right now. What one of those would you say is your favorite that you'd like to kind of riff on a little bit? Well, I mean, the one that I always love is number five, host beneficiary. Tony endorsed me for years. I did, as I said,$250 million 15 years ago. That's a quarter billion dollars. And I put up almost nothing. I went to the Tony's, Success Magazines, all the newsletters, all the people who sold business books direct.

40:18and I got them to recommend, endorse me to their audiences. And I had as close, I mean, I said I spent up front over all that time, 300 grand to do 250 ,000 ,000 ,000 ,000 ,000 ,000. Now, you don't have to do that, but it works for anyone. I love that. And I've got so many stories of doing it for clients and doing it for my own account. And Nikki asked if you would talk about Salesforce for a minute, number six. alliance to get a sales force. Oh, okay. I thought you meant sales force company. Yeah. And I see there, we have two sixes because I can't obviously count. Which six is it? Salesforce?

40:59But she said Salesforce. So one of the best ones to me would be John Paul DiGiorgio who basically went when he was doing Patron Tequila and created an alliance with all of the wine distributors because none of the liquor companies would distribute his thing because Cuervo had all of the rights. And Cuervo was like, if you distribute this other guy, then you don't get to have our stuff. And that was something they weren't willing to risk. And so he basically struck a deal with all of the wine distributors to distribute the product, tapping into all of their sales forces. When we had a motorcycle helmet manufacturing company, we created and manufactured motorcycle helmets, but we didn't have a sales force.

41:40So we partnered with another company that did all of the motorcycle products to all the thousands of stores all over the world that sell those products, and they didn't sell helmets. So we said, look, let your sales force add helmets to the mix. It doesn't take anything away. It gives them something that they get to make money off of, and it gets you another revenue stream, right? So that lets them expand by products. You can do this. That's one of the three things that we're teaching today, advanced, right? You can add these things to other people's, but we ended up with thousands and thousands of salespeople just because we struck that one strategic relationship.

42:17Yeah, I have a client that is one of the foremost authorities on cybersecurity, and he has a training program that teaches people in companies how to basically be more masterful and adroit. And he has got no organization. He just sells it himself. And I went and got one of the largest companies that does, they source contract people for the tech company, and they have about 10 ,000 tech companies they work with. And I got their salespeople to sell his training that costs him because it's virtual. His cost is almost negligible. So we give away a large share, half, but we get half from all these companies he never could reach.

43:01And their salespeople are motivated because we gave them a high incentive because it costs us nothing. It's incremental newfound income. So you can screenshot. what we want you to do is to be able to have some thoughts about how you can take advantage of partnerships. And so we created these things for you. You can screenshot them if you want. They're going to be made available for you to download in the portal as well. But thinking about for each of these things that we've talked about, how can you access other people's and then let's say audiences first? What's the source? What are the places?

43:34Who's got the audiences that you want already, right? What is that specific audience? and then how would you monetize them if you had that? And then ask the same thing for leads. Ask the same thing for distribution. Ask the same thing for customers. Ask the same thing for ideas and IP. I got two more and then... Yeah, I'm sorry. Capital assets. What are the assets that you don't have right now that you could get? Who's got them? How do you partner with? What's the source? What's the asset? How will it monetize in your business? And last but not least, systems. Because a lot of people have developed systems that would make your business run so much smoother and so much faster if you could just have access to it and it's so much faster to get it from them than it is to develop it yourself.

44:15Yeah, part of, or asking, how do I do it? And there's mechanisms and they're not that hard. But if I can give you foundation, part of it is understanding sunk cost investment. All these other companies have sunk cost in what they do. The easiest example is there are a lot of specialty consultants. They work their hearts out. They get a client. They do their job that works, and they have nothing else to sell. They have a sunk cost in the goodwill and the relationship they have with the decision maker and nothing else to do to monetize the residual value. We call it the back end. You are a solution to someone else's bigger problem or someone else's sunk cost investment or someone else's unrealized opportunity.

45:07When you understand that, and there's a process to it, but you get the essence right here, sunk cost, showing them that they've got more to gain by recouping the investment. We have taken unsold prospects that somebody, think about this. If somebody generates prospects from any kind of investment and they get, let's call it a 10 % conversion, that means they have a sunk cost of 90 % of their advertising or their marketing or their effort. And if you can show them as an example that you can reclaim that for them and they can get yield. If somebody has buyers that stopped buying because they have nothing else to sell, but they have a sunk cost in them and you can build on that.

45:52Absolutely. So I want to jump to acquisitions. I skipped one ahead. I want to jump to acquisitions now, which is the second way. I think that if you just go through those exercises that we created for you, those sheets, and ask yourself, what are all the things that I don't have that, if I had, would make a difference in my business? Who can I partner with that already has those things, and how can I monetize that, and how can I benefit them from doing it? usually you're benefiting them by revenue share, profit share, expansion of their business, allowing them to access new markets that you have that they don't, allowing them to access new products that you have that they don't.

46:31So it is very, very symbiotic. Both people are benefiting. And then the second thing that we do in addition to strategic partnerships is acquisitions. Acquisitions is where we're acquiring profitable business assets. It doesn't have to be, Don't tune out yet, right? It doesn't have to be a whole business. If you're like, there's no way I could buy a business, that's too crazy, that's hard. Number one, I'm gonna show you that it's not. Number two, but you can also acquire business assets. So all the things that Jay was talking about that you can partner with, you can also consider acquiring, okay?

47:03And I'm gonna show you how to do it without any risk so that it works in any country, wherever you are, any currency, and that you don't have to use any of your personal credit to do it, okay? You can acquire, just remember, that you can acquire some assets or you can acquire all the assets. You're not constricted to acquire a whole business. And I want to share with you also, just so you kind of have it in your mind, three ways that you can make money with acquisitions, okay? And this is whether you buy a single asset or you buy an entire company. The first is that you acquire under market. And if you're thinking, well, why would anybody sell their business for less than it's worth if they were to fully market it?

47:43And it's the same thing if you think about all the shows on television about people that can flip houses. Why are those people that are investing in those houses able to buy them under market? Well, because usually there's some sort of challenge, whether it's fixing up the house, not having the money to fix it up, not having time. There's some challenge that the seller has that causes them to be a motivated seller. So if we can acquire a business that at fair market value would sell at five times its profit, and we can acquire it at two times profit, then we would build instant wealth. So five times a $200 ,000 profit business, that says it should be worth a million dollars.

48:22But if you have a motivated seller that will sell at two, then two times 200 will be 400, a million minus 400, you'd pick up$600 ,000 in instant wealth, right? That's the wealth option there. The second option would be to make money, right? To cash flow. So cash on cash. So if you can acquire a business that is earning$200 ,000 in profit and you finance it using its own assets, which I'll teach you here in a minute, so that it only costs you$100 ,000 a year to pay for it. It's making$200 ,000. It only costs you$100 ,000 to service it. It doesn't really matter what you paid for it. You've got cash on cash profit of 100K.

49:03And then the third strategy would be to exit. We're going to talk about exiting or selling. And this, again, applies to assets too, because if you can increase the value of assets or buy them under market, you can sell them at a profit too, right? So there's all kinds of examples of that. Go ahead. And I want to make a point. So don't get overwhelmed with this because what we're not telling you yet is I have these 97 categories that begin with the three ways and the advanced, but there's, well, that's two, 95 other categories, and it's much easier to grow bottom line exponentially than top, which is the key to this whole thing because if you can double, redouble, redouble again the profit, you can not only increase almost instantly the asset value, but you can use that profit for all kinds of other things, acquisitions, reducing debt, making the business even more valuable, but you get control of it.

50:07And then you use my mechanisms to blow up EBITDA. And so this is something that we've used across. For Jay, it's thousands. for me, it's about 100 different industries. For just kind of credibility of looking at what you can do, I've got six companies have taken to$100 million, one to over a billion, and I can't even count how many to 1 million to 10 million. This is something that applies everywhere. I've got about my companies this year will do about 6.4 billion in total sales. I have a portfolio of companies. all of the companies that you see on the screen, those are the logos for several of them.

50:49There's an automotive repair company. There's a tax preparation company, an accounting firm. There's an event. There are several restaurants. There's a real estate agency. And I didn't spend a penny to acquire any of those out of my own pocket, okay? I didn't have to have a big pile of cash. I didn't use any of my personal credit. I'm going to show you exactly the strategies that I used to do that so that you can do it too. I want you to understand the background of why there's so much opportunity, though, and why you can actually get these things at such great deals. There's first, baby boomers are aging out, right?

51:25People like me and Jay, a lot of them are retiring. I don't think we're going to ever retire. We were talking about it last night at dinner. But a lot of baby boomers now are aging out. They don't want to stay in the business. And they've got lots and lots of reasons that I'll share with you in a second that they're going out. But they have, there's, I think it's 50 million baby boomers, right? 50 million baby boomers that are going to retire over the next 10 years. Well, 12 million of those people own businesses. That translates to about four and a half million actual businesses that are worth about$10 trillion that don't really have a plan of succession.

52:02Their kids don't want the business. The kids might look at it and say, well, it's a parking lot business or it's a laundromat or it's a digital marketing agency and it makes a million dollars a year. But I don't want that because I can be an Instagram star, right? I can open boxes of toys and get paid millions of dollars a year. There's a whole different world that they want for themselves. So they don't want those people's businesses, but we do. We do because we can buy them under market and make a whole lot of money and also help the people who want to sell them get them off their hands because the second factor is market overcapacity.

52:37Hit me in the chat. What percentage of businesses that actually get listed for sale do you guys think actually end up selling? In the chat, what percentage? I know you're there. There we go. 5 to 10%, 20 % don't sell, 50, 50, 6, 10. Do you know what? Only 20 % sell. That means 80 % of the people that have a business for sale that want to sell it, that list it for sale, and get somebody to agree to list it for sale can't sell it. There are hundreds of thousands, if not millions more, that don't even come into that number. So we think the number is actually a whole lot higher. The third factor is economic and personal factors.

53:22I know you guys have seen recently, right, in 2020, we had a little bit of an adjustment in the economy because of this thing called the pandemic, right? We've had seven crashes over the last 20 years, and we've had 13 over the last 94, and they're coming more and more frequently right now, which is great. That creates tremendous opportunity. All of the people who are smart financial people are saying that 2023 is a huge, huge year for opportunities to acquire businesses. And then they have personal issues, too. Acquisitions eliminate 100 % of the startup risk that you've got. Go ahead. Yeah, no, I mean, I'm going to give you a little spin on this, which is interesting.

54:04I've helped many clients acquire other people's businesses that became marginal or were losing. And the reason we did it is we could take their business, we could consolidate, we could eliminate duplicative efforts. We could make a marginal business very, very profitable just by doing that. And that doesn't count the three ways. That doesn't count the advanced three ways. You don't even know the power of Parthenon. You don't even know the nine drivers of exponential growth. All multiply or blow up EBITDA. Absolutely. And here's the thing. So I talk about startups a little bit. I know 85 % of you already have a business.

54:45But even when we have a business as entrepreneurs, we're kind of always looking at how can we pivot? What else can we do? Is that business interesting? I kind of always wanted to start that. And then new things happen like AI is super, super hot right now. Maybe I should start an AI business. Okay, whatever you want to do, whatever your crazy, unfocused ADD serial entrepreneurialism brings, you can do it so much faster and with so much more success if instead of starting, you acquire. Now, going back to those personal reasons, how many businesses do you think just close their doors every year?

55:19Put it in the chat, and while you are, I'll tell you a quick story about a friend of mine who was talking to a couple who had a business that was doing about$7 million a year, making about$2.5 million of profit for 20 plus years, for 20 plus years. And what happened was he went and started talking to them and started having a conversation. And then he kind of got distracted, went back a year later and said, okay, I'm ready to go. I'm ready to see if we can work out something to buy it. And she said, oh, sweetheart, we closed that business. We just didn't know what to do with it. We didn't know what to do with it.

55:54And I see this all the time, people closing businesses that are making millions of dollars a year because they don't know what to do. They don't have anybody to take it over. They try selling it and they can't. And then it just dies. And that is a huge opportunity. And remember this, what do people buy before, during, after, instead? Let me give you one example real quick. Let's say that you sold a supplement for weight loss. Well, if you don't understand this, any of you have ever gone on a diet, which is probably half of you, you didn't just buy that. When you're done with that, you did portion control food.

56:33Then you did a personal trainer. Then you did probably exercise equipment. If you understand that, you can double, redouble, redouble again the yield you can get from the investment in an asset. I want to make one point that is interesting. There's two kinds of entrepreneurs. There's 2D thinkers and there's 3D thinkers. A 2D thinker just thinks in terms revenue minus expense is profit. It's static. A 3D says, how many ways can I continually, perpetually leverage the assets I create over forever? So you can acquire these and you can grow them, right? That's the thing. Up to 90 % of startups fail.

57:17If you are a first-time founder of a business, then you're going to fail 90 % of the time, right? The average number of businesses that fail is lower than that because not everybody's a first-time entrepreneur. But even the smart folks up in Silicon Valley and the investment bankers and attorneys and all of the support that they've got and all the funding, they still fail 75 % of the time. But here's an interesting thing. Businesses that have been in business for 10 years or more are having 90 % success rate, literally flipping that stat on the head. So rather than facing this new thing that you wanna do with your existing business or this new business that you're thinking about going into and having that up to 90 % risk, wouldn't it be better to find one that was already there?

57:59Somebody that had already been through the tough stuff, who'd already solved all of the problems and has a 90 % chance of success? Think about this, a one-year-old business is twice as likely to fail as a two-year-old business. A five-year-old business has a 250 % more likely chance to succeed than a one-year-old business. And a business that's been around for 10 years is 3.5 times more likely to succeed. It's crazy. So play the odds, right? And why do they fail? Well, all the reasons that businesses fail become the reasons that people will sell. So if we can start thinking about if there's an asset of a business that you would like to have or there's a business you'd like to acquire, then find people that have not yet found product market fit.

58:43Find people that are thinking about retiring or that need to relocate to be with their kids or for health or whatever. People that are burned out, that are just tired of doing it, or they have opportunities. Not that the business is failing, because I'd never recommend, never recommend that you buy a business that's losing money or that you have to turn around. It's too hard. And there's too many that are already making profit for you to do that. So please don't go after distressed businesses, okay? but when I say money, I'm thinking about a lot of people have multiple opportunities, and so they've got more than one business, and one of the businesses is very profitable, but it's not as profitable or not making as much money as the other thing or not making what they need to make to maintain their lifestyle, and so they want to sell, right?

59:26There's shiny object syndrome. I know no one here has ever suffered from that. What is the other thing that I could be doing, and their business is so much better than mine. There's health reasons, death, partners, divorce, and flawed business models. These are all things that create motivated sellers, motivated sellers who are willing to sell for less than fair market value, okay? So, all of the reasons that you would want to buy versus starting up include that everything is already going on. All the things that you have to do to start a business, you don't have to do when you acquire the business.

1:00:02It's already got customers. It's already got the people that are working there. It's already got its systems. It's already got contacts. It's got everything that you need. So you are tapping into momentum and you're saving yourself all of the hassle of getting that thing off the ground that you would have to start from scratch otherwise. And the market for acquiring businesses is huge. In basically the United States, Canada, Europe, and Australia, we've got about 57 million small and medium-sized businesses. At any given time, about 4 million of those are for sale. But of the 4 million, only about 700 and some thousand of them will sell, which means that at any given time, there are about 3.6 million businesses that are in play for us.

1:00:48So there's no competition for you. There's no competition between us. There's plenty for everybody. It is an abundance mentality, which we like to have. There's an unlimited, really, number of businesses and assets that you go after. That's just businesses, by the way. The number of assets goes into the tens or hundreds of dollars. Yeah. I mean, we bought sales forces. I bought product rights. I bought brand rights. I bought phone numbers. I mean, I bought everything. Yep. And you're trying here. Our objective is how do we do this for no money out of pocket? How do we do this for little or no money out of pocket so we don't need to have a bunch of cash?

1:01:30We have a five-step plan for doing that. The first one is positioning yourself as an investor so that they know you're an investor. And if you have any issues calling yourself an investor, I want you to know that an investor is somebody that provides capital to businesses. And capital is defined as any resource that will assist the business. So you can be an investor with your brain. You can be an investor. Most of us have brains, right? So you can be an investor if you have a brain because you have resources, connections, experiences, skills. Maybe you know people that have money. Maybe you know people that have assets, but you don't need to have that.

1:02:08So you position yourself as an investor. You protect yourself for your personal credit and your existing business by setting up a new entity to do that. We call it an SPV. I'll explain that in a second. And then you're going to source deals. You're going to source and analyze deals, and then you're going to fund it. I'm going to show you a few of the over 220 ways that we have for doing this with no money out of pocket. You close the deal and you get paid. It's that simple. The first thing, though, is positioning yourself as an investor. So this is something you guys can do right away. You can go to all of your social media and declare that you are an investor.

1:02:43And I'll show you that in a second. First, I want you to think a little bit about being above the business. And I like to call this the O-myth. If any of you are familiar with the E-myth, the E-myth said, basically, we don't want you to work in the business. We don't want you opening the store and making the coffee and sweeping the floors and all that stuff. You should delegate and have systems, right? And that is true if you want to be stuck with that one business. But if you want to think about being an investor, then things are going to change. you're going to think above the business. Meaning that rather than thinking about how do I sell more widgets, how do I sell more of whatever it is I sell in my business, I want you to think about the business as the product.

1:03:26Think about the business as a product. And to me, that's a huge mind shift. Because if you start thinking about the business as a product, you can have as many of those products as you want. You become an owner of a portfolio of businesses. I love it. People that are operating, a lot of you said you need people, right? We're going to tell you how here in just a second. You can have an unlimited number of businesses when you're not an operator. When you're an operator, you will forever be constrained to a single business. And for those of you that are operators and want to do it, there's nothing wrong with it, okay?

1:03:58It will ultimately limit you from being able to do this. So you can, and you can also potentially say, I want to operate one business and I want to have others that I own and think about. Yeah, and this is just to reinforce, I always have, from the beginning when Tony and I met, I said either you work hard for your business or you figure out how to make the business work hard for you. And it's a very different mindset. Exactly. So in terms of being an investor, the reason that I like to approach as an investor is, number one, we are. We're going to bring capital in the form of whatever resources we have to these businesses that we want to acquire or these assets we want to acquire.

1:04:35So it's good to approach because the thing that most businesses think they need or business owners think they need is an investor or is an investment. men. So I suggest that you reposition yourself as an investor across all of the different social medias that you've got. If you look at my social media everywhere I look, everywhere that I am socially, I say I'm an investor and I say I'm a mentor. Those are the two things that I want to be. Then you want to protect your business and your personal assets. That's really easy. All you have to do is set up an SPV. Now, if you go down to the company's house, if you're in the UK, or you go down to the Secretary of State or the provincial formation officers, wherever you happen to be, and say, I need an SPV.

1:05:17They're going to go, we don't have those, right? An SPV just stands for special purpose vehicle. It's not the type of entity because it can be any limited liability entity, right? It can be an LTD, a PTY, a INC, an LLC, any of those things, okay? It's just how you use it. You're going to use it for the specific purpose of just acquiring the assets that you're going to acquire or just acquiring the company that you're going to acquire so that it provides a liability limitation between you and anything that might happen in that company that would create liability. Now, your action steps here are I want you to reposition yourself as an investor, add that to all your social media profiles, and I want you to think about forming an SPV.

1:06:02There's a lot of companies you can Google online and find companies that will form them for you for just the state filing fees. We have a company that does that as well. It's just easy to find. But before you do that first deal, get that in place. Okay. The next thing is sourcing the deals. So how are you going to find deals? You're going to set up your acquisition criteria. And that means you're going to decide what type of business or asset are you going to acquire. So I've got a sheet that I created for you. This will be in the portal for you guys as well. We're giving it to Tony's team. You can screenshot it now if you want.

1:06:36But what this does is it allows you to figure out what do I want to acquire, okay? And so we start up at the top right in the little green area with the industry that you're in. And then those first two things are really designed to think about what are the things you're interested in, your hobbies, interests, and passions. We call it HIP. And what is your entrepreneur, excuse me, what are your experience, your superpowers, and your skills so that you can kind of get a feel for where might you want to take the business you've got right now. And if you don't have a business yet, then you can still use this to decide what you want to go into.

1:07:11The bottom left corner is for you to figure out, how can I expand my existing business? What problem will I be solving for? And we'll talk about that in a second. And then the last one in the bottom right is, how much money do I need for it to make? How much income do I need it to provide me? And how much money do I need for it to grow? which will tell you roughly how much you'll need to spend to acquire. So going through that, we would say, what's my income target? Let's say that you want to make$10 ,000 a month, $120 ,000 a year, okay? And pick any number you want. I just put one in there, okay?

1:07:41And then how much are you going to need to spend to grow the business? Maybe that's$10 ,000 a month too. That means that the business's EBITDA, earnings before interest taxes, depreciation, amortization, it's basically a fancy way of saying profit, needs to be about$240 ,000 per year. So we know that 240K, then we're going to figure out what is that business going to sell for? They're typically going to sell on average, most businesses between one and five times profit. So that means that somewhere between 240K and 1.2 million is what you would expect to pay for this business. Don't freak out.

1:08:16I'm going to show you how to do it without any money out of your own pocket. So when you finish that sheet, it might look like this. This is my sheet. So I'm there. I'm identifying all the things I'm interested in. What are my superpowers and skills? How much money do I want it to make? And then what are the challenges or problems I want it to solve? Okay. The next thing is to use the acquisition wheel. So this is a tool that I created to help figure out what is it that we want to buy or acquire based on what do I need more of? So if you want more customers, then you can acquire competitors. If you want more leads, then you'll acquire media, people that have aggregated the attention and eyeballs of your ideal customer profile.

1:08:53If you need capability, all you that put people over here in the chat when it's what you need, you can do a thing called acquihire. It happens frequently enough that there's a term for it. To acquihire is to hire by acquisition. So you can get entire teams by acquisition. If you want to increase the average order value for what you want to acquire, excuse me, for your business, that's more products and services. But you can get access to markets and decision makers through this you never would have on your own. 100%. If you want to increase your lifetime customer value, then you can acquire things that are recurring revenue.

1:09:30If you want to increase your profit margin, acquire up and down the value chain and the product and distribution supply, excuse me, the supply and distribution chain. And last but not least, if you want to do innovation, which I think is going to be covered in some of the days after this, then you can also acquire IP individually, right? IP. So whatever challenge you've got in your business, whatever thing you want to solve for, this will give you an idea of what to go acquire. So lots and lots of suggestions here. I'm not going to read through them all. I'm just going to put them all up on the board for you.

1:10:01But you can see that there are dozens of categories of things that you can acquire in each of these seven categories. Okay. There's plenty of stuff to acquire. Recurring revenue, things that already have auto shipment, things that are memberships, things that are subscription. Up at the top right under products and services for AOV, it says BDA products. That's before, during, and after. What are people buying before, during, and after? Go buy those products or the companies that have those things and you instantly have more products to sell. If you want IP, you can buy other people's brands. You can buy their copyrighted stuff.

1:10:37You can buy their patents. Supply and distribution chain, you can buy your affiliates. A lot of people are paying affiliates 50 % of gross to sell their stuff, acquire the affiliate. You just made 50 % back in your margin. Yeah. And I, I basically did, I didn't introduce this, but the largest company with affiliates has 240 ,000 driving their business. Amazon has, I think 30 % of their business from that. If you think about it, there's all kinds of access vehicles. And a point I'd like to make, which is interesting too, real quick, you are an investor already, whether you realize it or not, You're just not really accepting much yield for the time, effort, opportunity.

1:11:17If you say, I'm making X, how much do you want to make in income and wealth? Wealth is the denominator here. Let's say it's 5X, 10X. If you have to do it with your own business, it's going to take a long time. It's going to cost a lot. If you have to expand, you're going to have to take offices. You can shortcut that and accelerate through this process and solidify your future, give you more security, give you more certainty. Okay. So a couple of case studies. So just real quick, when we wanted to go into a higher-end market, we own a company called digitalmarketer.com, trains people on digital marketing, but we wanted to go upscale into enterprise.

1:11:58We bought a company called OMI, the Online Marketing Institute, that had institutional and enterprise customers. When we wanted to get more leads for our pet toy manufacturing company, we started buying Facebook groups. So we bought Dachshund Love and a whole bunch of others around each breed of dog and each breed of cat and each breed of other animals so that we could then have an interested group of people that were leads. And this now generates about 300 sales a day, 300 sales a day for something that we paid no money to acquire. When we wanted to have a software development team, but we didn't know how to do that and we didn't have one, we bought a company that already had a software development team.

1:12:38When we wanted to add new products and services to our existing businesses for entity formation and things like that, we bought a company called Prime Corporate Services. When we wanted to add recurring revenue to our real estate brokerage business, we bought a company that provided back office support through a SaaS software as a service on a monthly subscription basis to the 11 or 1200 agents that we've got that work for us and then others as well. When we wanted to increase our profit margin in our pet manufacturing company, we acquired the distribution through the people who already were acting as affiliates for us.

1:13:14And when we wanted to have hundreds of courses that were available for a business that was teaching basically trade skills. We didn't create them all ourselves. We just went out and found a company that already had them. They had, I think it was 128 that they had, complete with business plans. So whatever you're thinking about acquiring or whatever challenge you're thinking about solving, do it through acquisition. And you can go, a lot of you are gonna instantly go out to all these online brokerages. There's a ton of them. You can just Google businesses for sale online. There's a whole lot of places that sell them, but the best businesses are not for sale.

1:13:52The best businesses are those motivated sellers, right? MS plus OMD, motivated seller plus off-market deals is going to get you your maximum ROI. So real quick, some places to find those. Use the acquisition wheel that I just shared with you to go and then once you do the categories, go through it again and say, what are the specific companies that I might want to acquire. You can find all their information on services like Zoom Info, Data Axel, Sales Navigator, which is a LinkedIn product, or Crunchbase. A lot of those offer free trials. You can find them on Facebook pages or within Facebook and Facebook events, Facebook places, all of that.

1:14:33You can also find them on YouTube and Instagram and TikTok channels. You can just search in the search engines on those platforms for whatever you want to find the affiliated groups that you're looking for. LinkedIn, Facebook, meetup groups on meetup.com, networking groups, masterminds, direct mail using a mail house, email using your CRM, through ringless voicemail. There's a couple of solutions where we'll just basically, when we're trying to find auto shops for sale, we'll go to Zoom info, get the list of all the auto shops that meet our criteria in California, let's say, and then we'll send them direct mail, email and we will record a message that says hey i'm interested in acquiring your business if you have any interest in that please ring me back and then we'll do a ringless voicemail to hundreds of them at a time so that we're able to process in bulk right you can go and find on podcasts and buying podcasts is really a great way to get markets to spotify other places as well and then masterminds.

1:15:32Thoughts? Oh, what complimentary product services your market buys just to ask them, ask your clients, what else, what is you buying? Who are you buying it from? And then find out who those companies' competitors are. Exactly. So the three action steps here are look at broker sites, because I know you're going to look at broker sites and see what kinds of businesses are for sale that might fit your categories and kind of what they're asking and that sort of stuff. Remember, 80 % of them don't sell. Then take an inventory of your off-market sources using some of the things that I just mentioned and your own brainstorming, and then use the acquisition wheel that I gave you to help find things as well.

1:16:14When you're trying to figure out who to talk to, the best thing is to talk to an owner. The easiest way to find the owner of business is just to call and ask who it is. But a couple of other ways, Zoom Info provides that as well. I'm not an affiliate or have anything to do with them, by the way. It's just one of many sources. Data Axel would be another. I think InfoUSA is another one that will provide that information. Check the webpage where they've got about us or team or contact information. That's a good way to do it as well. If you're in the United States, there's a site called secstates.com that lists all of the addresses for the secretaries of states for every state.

1:16:49You can use who is and do reverse lookup, or you can go on LinkedIn and search there, and you'll typically find founder or owner of a business. So lots of ways to find the people to talk to. Once you do, you want to connect with them. So use your own personalized voice to do this. Don't come up with a prefab package thing that makes you sound awkward. You know, like, hi, my name is Bob and I am calling about your business. You don't want to do that. That's not going to connect you with them, okay? Ask them sincerely. Ask them, say, you know, hey, I want to find out about the business. tell me the story of the business.

1:17:25Tell me the story of your entrepreneurial journey. We know people love to talk about themselves, right? People love to talk about themselves, let them. And when they're doing that, they're going to give you all this valuable information, right? As they do, if you find common touch points, like you're from that state, you always wanted to go to that school, you've always been interested in whatever thing they said they were interested in, then let them know that will help build know-like trust, right? And then future pace them by asking them, what would it be like if you sold that asset or that business, okay?

1:17:59That's what we really want to do. That'll help you connect with them. Then you're going to want to gather data. Now, data is easy. Rather than asking for financial statements and tax returns and things that make walls go up and attorneys get called and accountants get called, there's only a few things that you need. Screenshot this data sheet. I'm also going to make it available to Tony's team, so it'll be in the portal for you. This is all you really need to know. The whole left side is just asset information, and the right side is liabilities, asking price, that kind of stuff. So this is all you need to know.

1:18:32The two questions that are in the bottom right corner, though, are very, very important. The two questions in the bottom right corner are, what is the seller's reason for leaving, ask them that. Ideally, it's one of the 10 things that makes them a motivated seller that I gave you earlier. Okay. What's their reason for leaving and what do they want? What do they want? And can you help them get that by selling the business? Maybe they want more time with the kids. Maybe they want to travel the world. But if you're helping them sell the business and that gets them that, that's great. The next thing is to say, is what they're asking reasonable?

1:19:05There are lots of third-party resources. You can always just Google, what is the multiple for a plumbing business? What is the multiple for a digital marketing agency? What is the multiple for whatever kind of business you want in Google? We'll give you the result. Equidam and the NYU Stern School of Business publish lists of values. There's a company called BVR, Business Valuation Resources, that has a paid service as well. But I will give these to the Tony team as well so that you'll have an idea what lots and lots of different multiples for different categories of business are. And then last but not least, with about two minutes to go, I can give you how to fund your deals with zero out of pocket.

1:19:44And the goal here is to use creative financing so that you have the businesses literally pay for themselves. And we've identified over 220 strategies, just like Jay has 90. I mean, we have so many things. I think between us, we've got like 10 ,000 different things. So someday we'll do like a five-year seminar and just kind of get it all out. I would like that. But the deal stack is what I like to call this. And this is because you're trying to go from zero out of pocket, which is what you want to pay, to whatever the seller wants for their business. We're trying not to negotiate with them. We're trying to collaborate with them.

1:20:17Collaborate to get them what they want. Negotiation to me is there's a winner, there's a loser. Collaboration, we're working together towards the same goal. My goal is to get every seller what they want for the business if it's reasonable, okay? So the deal stack does this. we just basically stack up all the different strategies like little Lego blocks to be able to get them the money they want. Briefly, here are some of those strategies. The first is carve out. So if they have assets in the business that you don't need or want, carve them out and reduce the purchase price correspondingly. Let's say they've got a big machine that you don't need or want, and it's a t-shirt printing machine, and it's a business that does lots of printing, but you don't really care about t-shirts and it's a$100 ,000 machine, you can take$100 ,000 off the purchase price and say, I don't need that.

1:21:03I want the other assets. You can carve out almost anything. Ask the seller to finance the purchase. I almost start every offer with an ask for an 80 % seller finance at zero interest over 10 years. And you'd be amazed how many times I get it. Okay? You got to ask to get it. Earn out is a similar thing to seller financing, except it says, hey, there's some portion of the business, maybe 20%, that I'm not sure if once you sell it to me, if it's going to perform at the same level or not. So how about if we create a benchmark and say, as long as the business hits this in sales, then I'll pay you that other 20%.

1:21:41And if it doesn't, I won't. It gives the seller a chance to get paid more for the business and it reduces your risk. So it's better than seller financing because you might not have to pay it. Seller financing, we have to pay, right? And again, we're not going to pay it personally. We're going to do this through our SPV, the company we set up to do the acquisition. So the earn out would be the next way. And my opening offer is typically 80 % seller financing and 20 % earn out. And then I'll work back from there. So inventory consignment. If you're buying a business that has an inventory, just take all of the inventory and leave it in the seller's name and tell them you'll pay it as you sell.

1:22:16Tell them you'll pay them for that inventory as you sell it. You can also go to suppliers and get loans. And if you're thinking no supplier would ever get a loan, I can tell you about one business we had that was a home rehabbing business. And we were thinking about going in, opening a store to compete with Home Depot. Stupid idea, but we have them. And it was going to be called Rehabber's Warehouse. And Home Depot actually came to us and offered us$2 million cash up front not to go into that business, to keep buying from them for two years and another$2 million at the end of the two years if we aren't.

1:22:51True story. Yeah,$4 million from a supplier, no strings attached other than shop with them like we already were. You can factor accounts receivable. So the business has people that owe it money. You can simply factor those accounts receivable and sell them to somebody else. You can go to services like Leiter or American Express, and they will look at the revenue that the business has, and they will finance the business with a loan based on the revenue that it's been earning. So that's a really, really good way to go. Asset-based lending is another way. If there's any assets the business has that can be collateralized and you can borrow against, machinery, cars, that kind of stuff, you can do that.

1:23:29I always go to the integrators, the people who are operating the business. If the seller is leaving the business, and they don't always leave, if they're leaving the business, then who's going to take over and run it? Back to where all you guy said, we need people. So I want to have an operator for every business that I acquire. So I'll go and talk to the employees who are the managers and the key people, the COO, the CEO, the CFO, and see if they would be willing to invest in the company. And I'll typically sell them about 20 % of the company, 10 to 20. And then last but not least is a private placement.

1:24:05So you can go out to third parties and raise money, which I don't like to do that very often because then you're beholden to people go ahead just a couple points so the reason that we are collaborating on the book and then we're actually doing a lot of acquisition deals ourselves is that roland understands all that and he's also a very good marketer but i understand how to look at every impact or leverage point in the revenue system i call it revenue system optimization and i'll look at it and I'll see honest to goodness you can increase this by 10 percent 20 percent this you can do this because most nobody knows all these things you you're one of a very small number of people I used to make a point when they had bookstores if you went into a bookstore there'd be aisles and aisles on things like psychology relationships hobbies then you'd be this little tiny area on business skill sets.

1:25:03Most of the businesses out there aren't good marketers. They aren't good selling. They don't know the three ways. They don't know any of the 97 ways. And all of those mean almost instant revenue increase when you do it for no other investment. And what we used to do, and I've done a lot of this, I would help somebody who wanted to buy a business, look at the predictable lifetime value and the yield in an asset. An asset is a buyer. An asset is a distribution channel. An asset is a salesperson. And go to hard asset lenders who would love to get 12 % or 15 % and say, we'll give you 30 % on the money because we were making 300.

1:25:43Exactly. So what I've got here for you to look at is like a$2 million deal stack. So let's say that you were looking to acquire a company for$2 million or£2 million or wherever you are in the world, right? 2 million euro. And we just stack these things on top of each other. So maybe I use a private placement to raise 100K and then I do 50K by offering it to the existing management team. Maybe I get another 100K through financing some of the assets they've got. Then I'll get a revenue based financing loan for 100K. Again, all in the name of the company. I'll factor accounts receivable and get 100K.

1:26:14I'll get a supplier loan for 100K. Then I'll do inventory consignment, let the seller keep$150 ,000 of inventory and pay them as it sells. I'll do an earn out for$300 ,000, get$600 ,000 in seller financing, and carve out another$400 ,000, right? It's the flexibility that you get by having all of these tools that helps you be able to do as many deals as you want without ever having to come out of pocket. A couple of quick examples,$125 ,000 Facebook group, Somebody was offering for sale for our real estate business, 53 ,000-member Facebook group. They were asking$125 ,000. We agreed on a$75 ,000 purchase price, which, by the way, would be way higher than we would normally do.

1:26:57We just knew we could monetize it really fast. The seller agreed to receive the first funds that we got from any kind of cash flow. So basically, it was a revenue-based financing through the seller. So the seller got paid. When we sold something, we immediately went out and sold a sponsor. sponsorship to a mortgage brokerage that didn't compete with us to have exclusive access and create content for the Facebook group. We had a one-year sponsorship for a training company. Sponsorships are frequently overlooked because sponsorships are better than investors. Sponsors pay every year. Investors pay once and then they own part of you.

1:27:32Sponsors pay every year and they own nothing. And then the last two parts were we split equity with the finder, the person that found the business for us, wanted to come in the deal. So we let them come in for$2 ,500, and we did a credit card advance for the others. Go ahead. No, I was going to say the point he's making is that company didn't know how to monetize the assets, the relationships they had. That's awesome. Okay. Another one, SaaS company, software as a service,$300 ,000 asking price. We agreed on a$100 ,000 purchase. We did that over nine months at$10 ,000 a month with a seller finance thing.

1:28:07We also call that owner carry. and then we had them do a short-term 30-day note on the down payment for the first 10K. We sent one email to our list and I think we generated about 30K. So that was really cool. And then this one to me is the really fun stuff. So this was a publisher. They're asking 3.9 million. It's a 1.3 million EBITDA company. We were able to agree on 1.5 times profits or EBITDA. So that's$2 million purchase price. Got an 80 % loan from my neighbor who lived two blocks down from me that said, I was always saying, you know, hey, I just can't get enough return on my money. I was like, how about if you loan me some money and I will, well, I'm actually, I'm sorry, I'm jumping ahead.

1:28:47The seller financed a 80 % through the balloon. Then I got a short-term note from them for 30 days. For my neighbor, I got a private loan for$400 ,000, three years, 10 % interest only, okay? I think zero interest to seller, paying 10 % to my neighbor. Wanted to get rid of that as fast as possible. So I went and found two people. My private banker was one. I had a banker that was always like, how do I get in on a deal with you? I was like, I've got one for you. And I had an accountant and the accountant was always like, how do I get in on a deal with you? And I was like, I've got one for you. So I sold them at a 3X valuation for 800K.

1:29:24And they've seen this. So nobody gets mad or anything about this increase in valuation. If you buy at a low, low, low price and you sell to other people at market, they're going to be happy, just be able to disclose that to them. So effectively now, I've paid off my neighbor, right? Paid back that, gave them an extra 40K to say thank you, one year's interest, and ended up owning 80 % of the company, put 360 ,000 in my pocket. That's what's possible when you think creatively. So then you just want to close the deal. The last part, which I'm going to go super fast through, is cashing out and selling.

1:30:01Think about selling every three to five years. If you were to hold your business and it was to earn, let's say it's earning 500K and it increases 7 % per year, at the end of 16 years, you would have received 13.9 million in income during that time and you would sell it for seven times in our assumption what its EBITDA was or its profits at the end of that time. It means you'd put a total of 23.6 million in your pocket over that period of time. If instead, every three to five years, you were to sell, you were to pay taxes. In the United States, it's about 21 % for corporate tax, so I'm just going to say 21%, and you used 50 % to finance a new acquisition, you would at the end of 16 years end up with over$70 million.

1:30:50So the difference in selling is that you're getting paid maybe a decade, decade maybe a couple of decades of profits all in one year if you do that a few times you can easily over a 20-year period be a hundred years of income ahead of anybody else and if you think about that 74 million versus 23.6 i mean it's better it's 3.14 times better right and every 50 million or so helps jay and i both have always yeah and i this is i love the metaphor of rinse and repeat. Yes. Yeah. That's it. Remember that there are trillions of dollars sitting on the sideline in private equity and companies to buy companies like yours.

1:31:33And our goal is to buy the companies that are smaller. We call them blue box and green box companies. Those are companies that typically sell for between 2.5 and four times their profits. And then we want to sell those and grow them using all the cool things that Jay does and that Tony teaches to private equity companies who typically pay 15.2 times or public companies where the current rate is about 24 times. So think about becoming this aquapreneur where you're acquiring or partnering, buy, build, and sell, and you can create a lifetime. Yeah. And the only thing I would say, it doesn't matter where you start.

1:32:12You don't have to be huge to do this. It's got scalability. It's got smaller applicability. It is so much faster, safer, easier, and much higher yielding just on the acquisition. But when you overlay all the mechanisms and think the three ways in the advance are only two of 97 different ways you can blow up EBITDA. And when you blow up EBITDA, that turns into five times, 10 times, 20. It's just so wonderful. So if we have time for questions, the team here will tell us, We will do that. Just to kind of remind you of what you learn, we talked about the three advanced ways to do this. We talked about two strategies to achieve the three ways.

1:32:55Super fast, super shortcut, no risk. That's partnerships and acquisitions. And then we talked about how you can get that lifetime through an exit of wealth and income every three to five years. Yay. Okay. Okay.

1:33:14Ladies and gentlemen, Rowan Frazier Jay Abraham give him a hand let him hear you great job I know it was fascinating Tom let him hear you

1:33:31send some love in the chat box send some love in the chat box

1:33:50Give it up for Jay and Roland. Good job.

1:33:59Whoa! Yes! All right, my friends. Well, just good. That was spectacular for you. Make some noise, my friends. Spectacular. Look at the feedback. I agree with Holly Ford from T9. She's like, it was too short. It was too short. So, gentlemen, they both agree. Talk about, there are so many things to talk about right now, but let's use their time. Q &A, you got some questions? Raise your hand. Ask intelligent questions. Roland and Jay, Connie, you're ready to answer some questions, so you either put it in the chat box or you can raise your hand. We've got one here. It is from Team 2. And it is Angela.

1:34:38Give Angela a big hand.

1:34:45Hi, Angela, where are you from? I'm from Tennessee. It's so great to be here, and thank you all so much. This has already been an incredible morning. I don't even know how we're going to top this. I'm just so excited. You're doing great. What's your question? Yes, my question is, as an artist and business owner and still in the operator side as well, So what about attorney fees, legal fees? Because when you start adding up all those, I kind of count like the number of contracts and the paperwork. And I know you said, don't get in the tyranny of how, but I'm just curious how you manage legal fees.

1:35:22Because I would imagine you guys have a way to leverage that or tips with those fees that can add up and eat into profits. Absolutely. So there's a few ways to do that. One is that in most deals, the attorneys get paid after the deal closes. So if you're moving towards closing on a deal, we typically pay the fees from the company that we acquired. You can also negotiate that the company that you were acquiring will pay the attorney's fees in advance. That's another thing that you can do. The other thing that you can do is you can partner with the attorneys and say, hey, I'm going to be doing a few of these.

1:35:56Would you be willing to do the work? And I'll give you 3 % or 4 % or 5 % of the deal. There's a lot of ways to do that. So you can also say, hey, how about we do it as a success fee? and once the thing closes, then we'll do it that way? Or would you be willing to finance your fees over some period of time so that I can get paid, so that I can pay you from the company? So lots and lots of ways to do that. The other thing is to really, really save yourself a lot of fees. If you do this right, and I want to be careful, so no legal advice here, but be careful to, excuse me, but think about the possibility when you're using an SPV and you have no money out of pocket, you really have no financial risk.

1:36:38So I'll frequently close deals with no due diligence, no attorneys using templates from attorneys that I have already done a ton of deals with, right? And then I'll do the due diligence after the deal closes because I don't care if it doesn't work out. I have no risk, right? And once it does work out, then I know that I'm willing to pay the fees and spend the money to do that due diligence. Does that help? it does thank you so much that was very insightful good job thank you angela great job great question who's up who's up next

1:37:20we got team three we got team three it's is it heron hey how you doing man where are you from where are you right now? Hi, I'm Rehan. I'm from Perth, Australia. What an honor to be chosen. Thank you. We love it. Thank you, man. What's your question, Rehan?

1:37:40My question is, in really mastering that second area you talked about in acquisitions, what are the top five common mistakes in executing this strategy you've shared with us, and how do you recommend to solve them? Great question. That's kind of a multi-part question because you've got five things. But really, the first one is being clear on what you want with your acquisition criteria. People just go and start acquiring, kind of like a kid in a candy store. It's like, I don't need any money to acquire. I can acquire a dog walking service in a hotel and a digital marketing agency. And none of those things have anything to do with a coherent, cohesive, intentional plan to accomplish something.

1:38:23So what's my acquisition criteria? And the second part of that is, what is my plan? Why am I doing this? The next one would be that you get caught in the heat of the deal and you pay too much so that you're not willing to wait for a truly motivated seller who has a reason to sell and solve a problem they've got. We're not looking to take advantage of anybody. We're looking to help them out of the challenge that they've got. And so if you go to somebody that says, well, I never thought about selling, but you know, gosh, if somebody wants to pay me stupid money for it, I will. And then because that's the deal that you've got, you just stick with that deal and you don't do anything else, which leads to number four, which is that you don't have enough deal flow.

1:39:01You need to really think about when you're wanting to acquire, it's so easy to get lists of the potential acquisition targets that you want that you should have a couple hundred, right? That you're working at any given time. So not working enough of those so that just the one deal that I've got has to go through. And the second and the last one, excuse me, is not being able to walk away. So a lot of these are cakes that need to bake. The seller needs to be more motivated than they are the first time you talk to them. And if you can walk away and say, you know, look, it's really not a fit for me right now, but I'd love to stay in touch with you.

1:39:37And if it seems like you're going to be in a better place to sell a little bit later on the terms that I was talking about, then I'd love to have a conversation with you. That builds a pipeline. So those would be the five things I would say. I love that. I can't add. Thank you. Thank you. Thanks for that. Good job, man. Great job. Good job for being awake and first time right now. Let's go ahead to Team 9 and give it up for Lindsay. Lindsay, you out there from Team 9? It is! Hello, hello, hello, hello.

1:40:09Who have we got here? This is my husband, Brian. Almost husband. My question is and maybe this is one that Jay can answer, but once you acquire the business and once you start the process of integrating into it, what are some of the challenges with optimizing? What are some of the challenges that come with actually bringing a staff to optimizing their sales or optimizing their marketing? Great question. So I look at what I'll call the entire revenue system optimization. I look at everything they're doing, how it's doing, and how to make the existing activities better. Most people, depending on how they sell, first of all, pardon my voice, they don't target their audience properly.

1:40:56They don't make the best offers. They don't convert the best. They don't monetize the best. And I look at every facet because normally there's as many as literally 30 or 40 impact points. And you're not going to go on all of them, but I'll give you just a few. We've tested, because I've done all this, we've tested different ways of interfacing. If you're walking into a retail store, we've had large ones where we tested 33 ways of impacting or presenting ourselves at the front door and found one that was 300 % better. We've changed a headline or its equivalent. A headline, you know what that is.

1:41:38The equivalent is a subject line. The equivalent is the first thing you say. The equivalent is what you see when you hit the website, if it's e-commerce. The equivalent is what you basically do in your email and quadrupled result. We have added a better risk reversal, which is taking away the risk of buying and got as much as 50 % better. We have added bonuses and gotten like as much as 300%. I didn't go on and on, but there's just a myriad of them. Does that give you an idea? How do you handle the management or getting the team on once that's happening? I don't understand the question. If you're purchasing a business and you're keeping the staff in place, How do you get like how do you go into them and actually as a leader get them to buy into the systems while you're putting them in place?

1:42:31I don't think Tony has explained to you yet my strategy of preeminence, has he? No, I have not yet. Yeah. So, OK, so I am known worldwide for having created the strategy of preeminence. And you have to understand that there's two different kinds of business owners. There's a true entrepreneur who's adding value both external and internal. And then there's a proprietor who's just basically sucking economic oxygen out of the air. If you're really a true entrepreneur and a value creator, you're not just doing it for the outside market. You have three kinds of clients. Okay, so strategy preeminence real quickly.

1:43:14I've got to rush through this. you want to be seen as the most trusted advisor. And it's all about leadership. It's all about basically wanting more for your market. But you have three kinds of clients, certainly the ones that pay you. But the other two are the ones you pay. Instead of trying to squeeze everything out of your team or your employees, you want to develop and grow everything within them. Because most businesses get a fraction of a fraction of the yield. I have so many different mechanisms. One is called greatness. And most people aren't great. Most employees aren't great. But half of them aren't great because they don't know how to be great.

1:43:55And nobody's ever taught them. I can go on and on. But I hope that gives you just an insight. And tactically, you typically have a post-integration plan that you put into place. So you say in advance when you're acquiring a company, one of the stages of due diligence, you'll have management interviews. And so you'll interview all of the key people and you'll say, hey, listen, we're looking at coming in and we're so excited to come in because you're super valuable. We love what the company is. That's why we're interested in the first place. Here's our plan. And we want you to buy into that plan.

1:44:27We want you to be part of that. And that's also why one of the cool things about integrator equity is having those people have the opportunity that they never thought they would have to invest in the company and own a piece of it while at the same time providing you some of the capital to finance it. So that helps a lot as well. Thank you. Thank you. Yeah, true great companies are able to have a corporate culture, a business culture, where everyone is on a mission or a crusade and they see the inter... It's very exciting. And maybe I'll share some more things with Tony. You can share more deep on this.

1:45:05It's really powerful. Brian, can I ask, in your business right now, do you consider yourself that you're an operator still? I so right now we're moving back to a place where there's a lot of opportunities for us to purchase businesses. And so I'm looking at this as like, how do we create partnerships and how do we create strategic alliances? And then how do we also get those people to buy into the vision of what we're creating? And so I'm shifting into entrepreneur from. I ask because your question was an operator question. Does that make sense? If you think about what Tony's done the last 12, 13, 14, 15 years, where he's gone from eight or nine core companies, where he was an operator, to now he's got over 110, 11, 12, 13 companies.

1:45:52He's doing exactly what Roland and Jay have been talking about. He's coming in as an owner with guiding principles and systems and processes. He's not looking to be hands-on. And what Jay just said, he didn't use the same language as Tony, but that's what Tony's ESOP is about. If you've been to BN1, you know Tony Esop, his company, everybody here, it's a key part of RRI. We're all bought in. Like, we're bought in. Does that make sense? So when your team, when your internal customers, as Jay said, are bought into the company, I don't need Tony to be here and do a great job because we're in the mission.

1:46:26Does that make sense? So you shift that owner mentality, and then you've got systems and processes. You're looking just to come in and do your leadership and your culture and your vision, not, you know, make coffee and paint the fence. It's not your job. Love it. That's a really great distinction. Thank you. Cool. Give me a hand. Good job. Well done, guys. You guys are doing awesome. These are good questions. What have we got? We got team five. We have Kate. Hello, Kate McKay. How are you? I know. I know. I know. I know. Hey, Kate, whereabouts are you? I'm in Toronto. Fantastic. She's in Toronto, Canada.

1:47:02Very nice. So my question, I guess, is a bit specific. I'm in the property management business. And during your presentation, I started thinking the best complementary business for us right now, anyway, would be a landscaping company to help with all the properties that we manage. And I have someone in mind, but they are very heavy operators. So there's just two of them. Very, very small company. They're my neighbors. and I think I can add a lot of value to them by pulling them out of the being operators, by cutting their costs, being their client, and so on and so forth. But I guess my question is I wouldn't want to buy them 100 % out because I have zero interest in being a landscaping operator.

1:47:55How would a partnership of some sort work in that sort of situation? So I'm going to answer from an acquisition standpoint. I'll let Jay answer from a partnership standpoint. From an acquisition standpoint, we have lots and lots. And I mean, you're in a great position as a property manager for handy person services and lawn care and screen repair and cleaning and all kinds of other things that you could say, look, my business is a lead gen business for all of these other businesses. So I'm interested in acquiring them. What you do is you go to those two guys and you say, listen, you know, love you mean it.

1:48:35I love what you do. I can send you a ton of business. And the challenge is I'm not really into building other people's brands for them that I don't have an interest in. So what I'm willing to do is if you'll give me X percent of your company, you can pick the X. Then I will make you my exclusive referral source and I'll help you grow so much faster. And then it's win-win because you're getting a piece of the business that you're increasing the value of. Worst thing that can ever happen, and Jay will tell you some stories about this, is that you help build somebody else's brand, and then your brand suffers some terrible consequence.

1:49:10And the other brand that you help build becomes this huge company. So what we do is we just go to them and say, you know, for us to have that relationship and give you all that benefit, we want to have some equity as well. Yeah, I'm going to give a two-part answer as quickly as I can. I'm sorry we don't have more time. And you stimulated a thought I really forgot. So let me go back for a minute to that thought. Almost half of the business is out there, and probably this is relevant to all of you, get some significant part of your revenue from referrals or word of mouth. Raise your hand if you do.

1:49:44Referrals, raise your hand. So this is going to shock you. I used to do this with Tony when we had live audiences. I'd have everybody stand. Stand if you get at least 20 or more percent of your business from referrals or word of mouth. Just stand. Please. I want to make a very powerful downgate. And remain standing only if you have in place at least one formalized, systematized, referral-generating strategy that you follow all the time. If you do, stay standing. If you don't, sit down. Two. Stay standing if you have two. Sit down if you don't. three. Stan, if you keep. And most of the time when you get to three, they're dead.

1:50:27And yet the same people that get most of their business from referral don't even understand. They spend money on Facebook. They spend money on ads. And that's the outer periphery of trust where a referral generated buyer is about seven times more likely to buy, stay, buy more, buy more often, refer more people and costs nothing. We have 125 different ways to generate referrals. 125. You're never going to do 125. You're never going to do 25. But if you did three and you have none, that could explode your business or your business for somebody else. So that's one approach. The other, Roland and I were talking the other time and I'm racing the clock, is people don't understand there's a correlation.

1:51:11We used to get home improvement companies and a landscaper is one, but we would show people that when somebody does one thing, so example, you remodel your kitchen. Your house looks great in the kitchen. It looks like crap everywhere else. So what do you do next? You do your bathrooms. What do you do next? Maybe you do your carpet. What do you do next? Maybe you do your landscape. What do you do next? Maybe the roof. What do you do next? Maybe the garage. What do you do next? I told Roland, we just spent$150 ,000 fixing our driveway. You can connect all of those and put yourself in what I'll call the toll position.

1:51:46It's a lot more expansive, and I don't want to waste our limited time, but does that help? Yes, thank you so much. You're welcome. Great job. You guys are doing awesome. We're going to squeeze one more in, so I'm going to make one person their lucky day. We've got time for one more. Let's go to Team 8, and it says Maxine, but I don't think it's Maxine. Yes, it's Maxine. hey who we got here Maxime yes it's me it's Maxime cool name with an M yes thank you guys and my first language is French so thank you for your understanding and I'm really grateful I want to say like I feel like just watching what I just watched I feel like it's better than winning the lottery I just want to name it very nice my question is I have this belief I'm observing.

1:52:42I feel like I need to have a better financial strength or that my financials needs to be in a better place to even start doing that. I need to pay my debts. I need to have more savings in order to feel more secure before acquiring more businesses or starting acquiring businesses. So my question would be, can you challenge that? or if it's actually better to pay my debts first. Pour le premier, votre anglais est parfait. Oui? Okay, that was classy. That was very classy, Roland. Well done. Well done. So, do you want to start? No. I want you to start. One of the biggest mistakes that I see in life is that we get ready to get ready to get ready to do something.

1:53:39And so we can't do this. We set all these artificial limitations on ourselves that this chain of events must occur before I can whatever the next step is. So you can do this. There's nothing that Jay or I shared with you today or that you'll learn in this whole program that you can't start doing immediately. And so my challenge to you is that you have false beliefs that are holding you back around the list of things that you must do to now take action and do the next thing. So it's kind of a built-in procrastination and holdback system that you've got that if you can break through that by just looking at everything that we said, it doesn't matter if you're in debt currently, doesn't matter if you've got all kinds of business challenges, financial challenges, if you're in bankruptcy.

1:54:33I've had people buy businesses that were about to go to jail. I've had people buy businesses that were in bankruptcy currently. I'd had people that were at the bottom of, I had a guy that sent me a DM and said, I had a gun in my mouth. I was ready to end my life because I didn't see any way to go. All of those people turned their lives and their businesses around and are successful now using these strategies. You're probably not anywhere close to the place that those people were. You can absolutely do this. You tell yourself you can do it. You make the list. You set the goals and you put time on it that you're going to do it by.

1:55:17You will make this happen. One more thing, and this is not meant to tease you. It's just meant to tell you we're out of time. You didn't even talk about consulting for equity. I didn't. I didn't have time. But why don't you give them a one minute? Okay, sure. So one thing that you do have for sure is you have knowledge, skills, experience, and connections, or you have the ability to get those things. Yes. It costs you nothing. It can be found instantly because so many people sell their time for pennies on the dollar of what it's actually worth. Yep. That you can take that skills, training, knowledge, experience, connections, and go to companies that you would like to be involved with and offer them those things in exchange for equity in those companies.

1:56:07It's both of our favorite way to acquire. More than just like buying a business is to go in and say, hey, look, you could use help with this. And so that is something that you could start tomorrow. And let's say that somebody says, well, I need help building funnels. And you're like, I don't know how to build funnels. There's a whole list of people at ClickFunnels that know how to build funnels. There's a whole bunch of people at Upwork and on Fiverr, right, that will do them for almost nothing. So if you go into a company and say, I'll do all your funnels for you, 10 % of the profit. Yes. And it's arbitrage.

1:56:39It's arbitrage. And let's say it's making a million dollars a year right now. Well, now you got$100 ,000 a year and you're going to pay somebody 10 grand to do the funnels. You get a 10x return on your investment, which by the way is infinite because you're not paying any money. And you can do that right now. There's no reason you can't stop. There's no reason you can't do it right now. One super quick thing is if you calculate the average number of days that a person lives, that a male or a female lives, and you are male or female or identify that way at the time, and you say, I don't know, like the average person, I forget what it is now, but let's just say it's 70 and you subtract your age from 70 and then you multiply that number by 360 that's all the time you have left if you cross that number off every day those days are ticking away and so every minute that you spend stopped frozen not taking action in fear of what's next you're you're squandering yes that precious resource of the life you have left don't squander it you can absolutely do this yeah it's great

1:57:43Hey, Roland Frazier here. If you're looking for a way to grow your business exponentially, to get more customers and ultimately increase your wealth, there's no faster way to do it than to acquire other businesses that already have the customers, products, services, teams, and media that you want. If you want to double your sales, just acquire a company that has the same sales as yours. It sounds simple, but far too many people end up starting new businesses that fail and forget that they could skip all the hard stuff and just acquire one that already exists. There's a reason why private equity firms, family offices, big companies like Apple, Google, and some of the smartest entrepreneurs on the planet do not start new businesses from scratch.

1:58:26They acquire already successful businesses. And when they do it, they instantly increase their sales, their profits. If they want market share, they increase that. they can get new products and services to offer all instantly. Hey, look, 90 % of new businesses fail. 90%. Why not acquire an already successful business and increase your chances of success by 900 %? What most people don't realize is you can acquire highly profitable businesses with no money out of your own pocket in pretty much any country in the world, regardless of your credit and without having to go find a bunch of investors or needing any experience.

1:59:02Look, I've been acquiring businesses for over 30 years now, and I cover the whole process in my Epic Investing Strategy Training, and I want to give it to you 100 % free. Just visit businesslunchpodcast.com forward slash epic to get your free access to my Epic Investing Training right now while it's available.

1:59:28Ever wonder how some people build real wealth through acquisitions while others just sit on the sidelines? Well, I'm here to tell you it's not about luck. It's about having the right system, the right deals, and the right guidance. And that's exactly what we give you in the Epic Deal Fast Track. If you've been thinking about buying a business, but you keep getting stuck, whether it's finding the right deal, structuring the financing, or negotiating with sellers, you are not alone. Too many people waste months, even years, just thinking about acquiring a business while the real opportunities pass them by.

2:00:02The Epic Deal Fast Track is not another course. It's actually an implementation program, and it's designed to get you from the idea to the acquisition in just 16 weeks or less. We work with you one-on-one to help you find, fund, and close your first or next deal. And once you do, we're gonna plug you into our elite Epic Board community so that you can keep scaling through acquisitions. We install three powerful systems in your business. The first is the DealFlow Engine. So you always have high quality off-market deals coming to you. Number two, we give you our offer and funding system so that you can structure offers that get accepted and fund them creatively many times with no money out of your own pocket.

2:00:45And number three, our closing and integration system so that you don't just buy a business, you actually successfully run and scale it once you have acquired it. Plus, you'll have direct one-on-one support from an Epic Deal advisor every step of the way. And that's people that have actually come up through the system and done these deals themselves. That's the only way to become an Epic Deal Advisor. And if you're serious about acquiring a business this year, don't just sit on the sidelines. Just text I'm in to 334-458-9034 and we'll get you in. So text I'm in to 334-458-9034. We'll get you in.

2:01:22No fluff, no wasted time, just real deal making from people that are actually out there doing deals right now. I'll see you there.